IBRA to give 100% interest discount to small debtors

IBRA to give 100% interest discount to small debtors

JAKARTA (JP): The Indonesian Bank Restructuring Agency (IBRA),
in collaboration with 10 domestic banks, has agreed to provide
bank refinancing facilities to indebted small and medium
enterprises (SMEs) interested in joining the agency's Crash
Program with a 100 percent interest rate discount.

IBRA said on Friday in a statement that the only SME debtors
with a maximum outstanding loan of Rp 5 billion (US$602,000), and
who would pay their loan in full were eligible to participate.

"This incentive reflects IBRA's concern for retail and SME
debtors who are expected to resume their banking activities and
revitalize their businesses," the agency said.

The agency explained that the 10 banks comprised Bank
Arthamedia, Bank Bukopin, Bank Central Asia, Bank Danamon, Bank
Internasional Indonesia, Bank Lippo, Bank Niaga, Bank Patriot,
Bank Prima Express, and Bank Universal.

IBRA said that debtors who need refinancing facilities should
contact any of the agency's 11 centers located in Jakarta,
Bandung, Semarang, Surabaya, Denpasar, Medan, Lampung, Pontianak,
Balikpapan, Manado, and Makassar.

It added that the debtors could also contact any of the branch
offices of the above 10 banks.

IBRA added that the number of SME debtors under its management
reached 75,000 but that they only had a relatively small combined
debt of Rp 6.4 trillion.

The agency has received more than Rp 200 trillion worth of
non-performing loans (NPLs) transferred from closed down and
recapitalized banks.

IBRA is mandated to restructure and recover the NPLs.

The agency is focusing on restructuring more than Rp 80
trillion in NPLs with individual loan size of more than Rp 50
billion owed by its top 21 debtors.

The agency has also reached agreement with a number of banks
to help it in restructuring medium size NPLs. (rei)